Wall Street Signals: Electric vehicle revolution: While Tesla hits $1,500, it still depends on battery materials such as graphite

Electric vehicle revolution: While Tesla hits $1,500, it still depends on battery materials such as graphite

The occasions are changing, and there are new requests for electric vehicles. Tesla has now gotten more significant than Toyota. In a wretched market, it has significantly increased since Match, 2020. Increasingly Electric Vehicles imply a developing interest for vitality stockpiling and charging stations that will drive the development of the battery materials to advertise. Driven by CEO A. Paul Gill, Lomiko Metals Inc. (TSXV: LMR) is centered around the investigation and advancement of minerals for the new green economy, for example, lithium and graphite.
“This year is the start of the Electric Vehicle Revolution. Lomiko would like to become part of the Battery Material supply chain,” stated Mr. A. Paul Gill, CEO.

Lomiko recently engaged Kenmar Securities, LLC of New York (“The Advisor”) to raise $ 40 million Cdn for acquisition and development of critical metals projects. Kenmar will assist the Company in analyzing its business, operations, properties, financial condition, and prospects, prepare suitable marketing materials, contact any potential partner companies, assist and advise the Company with respect to the financial form and structure of any potential transaction.

The use of large flake graphite as a refractory (heat-resistant) material began before 1900 with the graphite crucible used to hold the molten metal. In the mid-1980s, the carbon-magnesite brick became important, and a bit later alumina-graphite material. Graphite blocks are also used in parts of blast furnace linings where the high thermal conductivity of the graphite is critical.

Lomiko is currently working in Quebec to become a supplier of graphite used in those anodes. The next step is to develop a Preliminary Economic Assessment (PEA) which will include costs and the potential market for this key product.  In order to start the PEA, Lomiko must first deliver its second resource prepared in compliance with NI 43-101 Regulations from La Loutre.

Graphite electrodes are another long-term market for natural flake graphite.  Graphite conductors which release electric energy in the form of an electric arc, are used to heat and melt the steel scraps in an electric arc furnace. They are currently the only products with high electrical conductivity and are able to maintain extremely high heat generation in this demanding environment. With the growing demand for quality steel in the aerospace, automotive, and electronics industries, graphite electrodes are also becoming increasingly popular.

The graphite market is predicted to hit $27 Billion by 2025. With demands for graphite from various industries, the market growth of graphite has been exponential. At present, much of the raw graphite mined is processed in China.

The price for 95% C (purity), 15 microns Spherical Graphite is $2,700-2,800 USD/tonne, far above the price of other forms of graphite as indicated by the Industrial Minerals. Industrial Minerals indicates China imported 21,486 tonnes of flake graphite in June 2019, 14,864 tonnes came from Mozambique, accounting for 70% of total Chinese imports. The principal source of graphite flake in Mozambique is Syrah Resources, which primarily produces 94% C, -100 mesh material. Increased exports from Mozambique has weighed on the market since Syrah began commercial production at the start of this year. June’s import volumes into China were the highest since at least January 2017.

In the first half of this year, China imported 105,462 tonnes of flake graphite in response to the healthy development of the lithium-ion anode industry in China. At least half of total imported flake graphite was used in the anode industry, with the refractory sector the second-largest consumer, according to market sources

The Company

Lomiko Metals Inc. is a Canada-based, exploration-stage company. The Company is engaged in the acquisition, exploration, and development of resource properties that contain minerals for the new green economy. Its main focus is the La Loutre Graphite Property.

The company has discovered high-grade graphite at its La Loutre Property in Quebec and is working toward a Pre-Economic Assessment (PEA) that will increase its current indicated resource of 4.1 Mt of 6.5% Cg to over 10 Mt of 10%+ Cg. Paul Gill, CEO of Lomiko Metals has stated that the exploration has been completed and it is showing two different areas of deposits: the graphene battery zone and the refractory zone. The consolidated 43-101 resource estimate is expected soon. According to Mr. Gill, the material at Lomiko’s discovery is of similar or better quality than the material at the IMERYS Carbon Graphite Mine 53 km to the Northwest and 100km from the IMERYS processing facility at the Port of Montreal. The IMERYS mine has a mine closure plan for 2022 and needs replacement. Located near a producing mine with an experienced workforce with excellent infrastructure and year-round working capability, La Loutre property has great potential to become the next graphite mine.